Dangote Refinery on Thursday night in a statement clarifying its position on crude oil supply following media reports alleging the company had backtracked on its earlier claims.
This was contained in a statement by the Group Chief, Branding and Communications Officer, Anthony Chiejina in Lagos
The company stated it has never accused NNPC of failing to supply crude oil. Instead, Dangote Refinery’s concern lies with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and its reluctance to enforce the domestic crude supply obligation. This obligation mandates that a portion of crude oil produced in Nigeria be supplied to domestic refineries.
“Our attention has been drawn to media reports alleging that the Dangote Refinery has backtracked by acknowledging that NNPC supplied about 60% of the 50 million barrels we lifted”, the Group stated.
“To clarify, we have never accused NNPC of not supplying us with crude. Our concern has always been NUPRC’s reluctance to enforce the domestic crude supply obligation and ensure that we receive our full crude requirement from NNPC and the IOCs”.
“For September, our requirement is 15 cargoes, of which NNPC allocated six. Despite appealing to NUPRC, we’ve been unable to secure the remaining cargoes. When we approached IOCs producing in Nigeria, they redirected us to their international trading arms or responded that their cargoes were committed”.
“Consequently, we often purchase the same Nigerian crude from international traders at an additional $3-$4 premium per barrel which translates to $3-$4 million per cargo
We therefore still insist that we are unable to secure our full crude requirement from domestic production and urge NUPRC to fully enforce the domestic crude supply obligation as mandated by the PIA”.
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